Expired I140 Cheque and reissue

[krishna182]

Hi,

I quit my previous employer in May 2016 and requested to Roll over my 401k to new emloyer plan in June 2016. They sent me a check which i failed to deposit in my new 401k . in Jan 2017 they send me a 1090R with column 7 as G direct rollover. later in Aug 2017 i requested them to send me another check so that i can rollover they send me a check less 20% tax addressed to me. I called them to correct it so that i can do direct rollover but they are claiming that the date has passed .

what options do i have now . i did not take the money and it is my fault to delay it this long. can i be able to get the tax refund and also avoid the 10% penalty if i can open a new IRA .

Please advise

[ETA Consulting LLC]

Call them and explain that you never had constructive receipt of the funds; so there is no "60 day period".  Hence, I have no idea what "date" would've passed. They should reissue the check as originally issued; made payable to the rollover institution FBO you as a direct rollover.  You may have to get a supervisor on the line, because apparently the person you spoke to on the phone doesn't know what they're doing.

Good Luck!

[ESOP Guy]

I agree with ETA.  If the check was made out to the IRA (or other 401(k) plan)  the first time then there is no 60 day clock to roll it over.  Since you could not legally cash the check you never had the constructive receipt of funds like he says. 

We would always have sent you another check made out to the rollover institution less a $55 reissue fee that is charged by the bank not my company.  I agree with ETA on the idea of going up the chain of command if needed.